MEMBERS of the Municipal Council of Bakun in Benguet said they did not issue authority to Mayor Bill Raymundo to enter into agreement with Hedcor Inc. on August 7.
On August 11, the council approved Resolution 106-2020, informing and notifying all concerned parties that the august body has not issued authority to the municipal mayor to enter into agreement with Hedcor Inc.
The council said the mayor furnished them copy of the letter-agreement he entered into with the company, which contains terms for the payment of the company's accumulated two and one percent obligation to the town and other concerned barangays for 2019.
They highlighted the second to the last paragraph of the agreement which states in part the mayor warrants that he is duly authorized to sign in this letter-agreement.
"This body has not given any authority, formal or otherwise for the municipal mayor to enter into and sign for and in behalf of the municipality in any agreement with Hedcor Inc.," the council said.
Section 444 of the local government code of 1991 states that the mayor "upon authorization by the Sangguniang Bayan, represent the municipality in all its business transactions and sign on its behalf all bonds, contracts, and obligations, and such other documents made pursuant to law or ordinance."
On July 26, Raymundo and Vice Mayor Edward Buscol, with the members of the Municipal Council, served the Stoppage of Operation Order to Hedcor Inc. for three hydropower plants in Bakun namely FLS, Lon-oy, and Labay.
Town officials said they served the stoppage order due to expired business permit and memorandum of agreement on the operation of three hydropower plants.
The town added the hydropower company did not respond to the request of the local government unit (LGU) to attend meetings to address issues and concerns and the LGU was later surprised by a 72-hour temporary restraining order (TRO) and a preliminary injunction filed by Hedcor Inc. versus Bakun officials.
The TRO was denied on July 24.
After 12 days, the three hydropower plants resumed operations following the dialogue and signing of an agreement by the Bakun led by Mayor Raymundo and Hedcor Inc. in Benguet capitol on August 7.
Under the agreement, Raymundo, as the chief executive, will issue a permit for the three plants once the company completes their business permit renewal process and other requirements, while Hedcor is asked to withdraw the case against Bakun officials filed in the Regional Trial Court upon the issuance of business permit.
Upon signing of the agreement, the company pledged to restart negotiations for the new MOA with the town for the voluntary sharing of its income for 2020 onwards.
"Both parties shall exercise all efforts to resolve and agree on a MOA at the soonest possible time," stated the agreement signed by Mayor Raymundo and Hedcor Vice President for Corporate Services Noreen Vincencio.